General Warning : Investment in shares can be injurious to your WEALTH.Caution :The blog writer has personal/ family members' holdings in this company ,so please make suitable "provisions " for likely over optimism NB: All information given in good faith. Please recheck all facts etc. No responsibility with this author / blog.

April 27, 2014

There is no need to have a separate class of MP s and MLAs. MLA s or MP s of a particular state should discharge the responsibility of both MP s and MLA s. They can use video conferencing and need not travel much with their Red Light caravans ( at Tax Payers' expense )Example5 MLA s = 1 MP. Why have a separate class of MPs. These 5 MLAs should act as Punjab MLA s for Punjab state ( Punjab Assembly )matters. For Cenre ( Parliament ) these very MLA s ( through video conferencing ) should participate in the Parliament Why have MP s ?

April 20, 2014

Nirma Limited - Shabby Treatment of its Loyal Shareholders

Message Received :-I have a few shares of Nirma Limited. I read on this blog that company tried to forcibly cancel shares in July 2013 and pay investors a small amount. Was the company successful in this? I did not receive any cheque for pending amount, hence i ask this question. Please let me know if anyone has knowledge or own Nirma shares.================================================================Blog Answer :-Nirma Limited has treated its remaining LOYAL shareholders very shabbily.

Reason given in EGM Notice ( for 23/ 07 / 13 -11 AM , Ahmedabad ) as to why Promoters ' shares are excluded from compulsory capital reduction is that these Share holders have given their consent to RETAIN their shares ( Page 3 - Explanatory Statement , Second Last Para ).

So , the legal position may be that all those shareholders ( Promoter or Non Promoter ) who give their consent to retain their shares would be excluded from this compulsory acquisition / cancellation of shares .

2 ) The move to compulsory acquire shares selectively from the remaining share holders @ Rs. 225 Per Share is unrealistic and unacceptable to us .

3) The compulsory buy-back rate of Rs.225/- is grossly unfair to the remaining public share holders as the rate at the time of Delisting was Rs. 260. Instead of increasing the Rate , it has been decreased

4 ) We request you to withdraw this anti Non - Promoter move in its entirety .

5 ) PIease, also dispatch a certified copy of the valuation report.

6) In case, the Company persists , then we would be left with no other remedy but to challenge the same in appropriate Court of Laws , including the Hon'ble High Court of Gujarat and the Hon'ble National Company Law Tribunal.

( Please study the rulings given in the case of compulsory and selective cancellation of shares by Cadbury India Limited )

As we are CAVEATORS , please do keep us updated of all the legal moves by the Company in this regard.

Nirma EGM- Shareholders Force Voting - Ballot Results Tomorrow

We have received Reports ( which please RECHECK independently - no responsibility with us ) that :-EGM- 23-07-13 - for compulsory acquisition of Non Promoter shares was stormy.Shareholders asked for1 ) Cancellation of this anti shareholder move.2 ) challenged the Valuation Report3 ) Decided to oppose the Move in the Hon'ble High Court of Gujarat ( on the lines of Cadbury India and Shakti Metdor cases)Ultimately , voting was held ( ballot system )Results are expected to be declared tomorrow.BLOG DISCLAIMER : PLEASE RECHECK ALL INFORMATION. NO

RESPONSIBILITY WITH BLOG

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Disclosure :- Blog Writer holds in his name / family members shares of Nirma limited

April 02, 2013

Small Shareholders of the Delisted FMCG Company , Nirma Limited ,have welcomed the cancelling of the grossly Anti Small Shareholder move to Reverse Split ( Consolidate the Face Value of One Share from Rs. 5 Per Share to Rs. 50,000 Per Share ) by issuing one Share of Rs. 50,000 for every 10,000 shares.Such a move is a under hand Compulsory acquisition of shares from small shareholders.For this Nirma Limited Resolution , please click :-{ Please do read the highly arrogant ( Anti Non Promoter shareholder mindset ) and illogical Justification - given for this Shameful move in the EXPLANATORY STATEMENT in the Agenda circulated .}

uly 06, 2013

Reason given in EGM Notice ( for 23/ 07 / 13 -11 AM , Ahmedabad ) as to why Promoters ' shares are excluded from compulsory capital reduction is that these Share holders have given their consent to RETAIN their shares ( Page 3 - Explanatory Statement , Second Last Para ).

So , the legal position may be that all those shareholders ( Promoter or Non Promoter ) who give their consent to retain their shares would be excluded from this compulsory acquisition / cancellation of shares .

2 ) The move to compulsory acquire shares selectively from the remaining share holders @ Rs. 225 Per Share is unrealistic and unacceptable to us .

3) The compulsory buy-back rate of Rs.225/- is grossly unfair to the remaining public share holders as the rate at the time of Delisting was Rs. 260. Instead of increasing the Rate , it has been decreased

4 ) We request you to withdraw this anti Non - Promoter move in its entirety .

5 ) PIease, also dispatch a certified copy of the valuation report.

6) In case, the Company persists , then we would be left with no other remedy but to challenge the same in appropriate Court of Laws , including the Hon'ble High Court of Gujarat and the Hon'ble National Company Law Tribunal.

( Please study the rulings given in the case of compulsory and selective cancellation of shares by Cadbury India Limited )

As we are CAVEATORS , please do keep us updated of all the legal moves by the Company in this regard.

July 03, 2013

In treating its Share holders shabbily / unwanted babies ,Nirma Limited has beaten its Peers like Cadbury India , Shakti Metdor etc.Whereas Nirma Limited voluntary Tendering Rate at the time of Delisting was Rs. 260 , now , Nirma wants to kick out the remaining share holders @ Rs, 225 Wonder how they treat Class IV employees there.Are Share holders ( owners of the Public Limited Company ) treated any better ?If such is the mind set of owners then why do they invite Public Capital , in the first place ?They are better off as HUF / Private Limitedhttp://www.rareindianshares.info/2013/07/nirma-compulsory-buy-back-shareholders.html------------------------------------------------------------------------------------------------------------NIRMA LIMITEDDelistedwef :28-03-2012Exit Offer : Rs. 260 ( for Rs. 5 Paid Up Share )Exit Window Closed on 03-10-2012-------------------------------------------------------------------------------

uly 06, 2013

Reason given in EGM Notice ( for 23/ 07 / 13 -11 AM , Ahmedabad ) as to why Promoters ' shares are excluded from compulsory capital reduction is that these Share holders have given their consent to RETAIN their shares ( Page 3 - Explanatory Statement , Second Last Para ).

So , the legal position may be that all those shareholders ( Promoter or Non Promoter ) who give their consent to retain their shares would be excluded from this compulsory acquisition / cancellation of shares .

2 ) The move to compulsory acquire shares selectively from the remaining share holders @ Rs. 225 Per Share is unrealistic and unacceptable to us .

3) The compulsory buy-back rate of Rs.225/- is grossly unfair to the remaining public share holders as the rate at the time of Delisting was Rs. 260. Instead of increasing the Rate , it has been decreased

4 ) We request you to withdraw this anti Non - Promoter move in its entirety .

5 ) PIease, also dispatch a certified copy of the valuation report.

6) In case, the Company persists , then we would be left with no other remedy but to challenge the same in appropriate Court of Laws , including the Hon'ble High Court of Gujarat and the Hon'ble National Company Law Tribunal.

( Please study the rulings given in the case of compulsory and selective cancellation of shares by Cadbury India Limited )

As we are CAVEATORS , please do keep us updated of all the legal moves by the Company in this regard.

Promoters initially invite public investment by selling shares in their holding companies . These holding companies promote new companies Over a period of time their promoted ventures succeed and the original investment made by the holding company multiplies many times over in value . Now instead of genuinely sharing the wealth with all the stakeholders non promoter minority share holders of original holding companies are treated as UNWANTED , like sort of poor relatives at a rich cousin's marriage party.1 ) Majority stake in these Holding companies is always with the Promoters. So they are able to get all Resolutions passed . There are no Institutional holdings ( domestic or Foreign ). So level of transparency in these companies is not at the same level as widely held companies.It suits the promoters to keep these companies in low profile and keep its true worth hidden.. Non promoter share holders suffer.2 ) Over a period of time many share holders ' folios become dormant due to death of original shareholders and court cases .3 ) In many pre 1947 incorporated companies many share holders migrated to Pakistan . Such folios ( Custodian of Enemy properties ) also are dormant . 4 ) Either these companies are not listed or these are kept only NOTIONALLY listed in Regional Stock Exchanges. Such listings are of not much use to the non promoter share holders.5 ) Despite massive EPS these investment companies either skip dividends or declare woefully low dividends. Such moves keep the company in low profile and the share rate ( if any ) artificially low. Such practices hurt non promoter share holders' interests .6 ) Despite bulging Reserves Bonus Shares or Splits are not done. (Very surprisingly , Binani Metals Limited has done a Reverse Split to unprecedented Rs. 1000/-. 7 ) Many such investment companies avoid sending Annual Reports to Non Promoter share holders.8 ) Some such companies shift their Registered Offices to obscure places and hold meetings at venues which are difficult to reach. Many a time only company officials ( with Proxies ) are in attendance to see the proceedings through.Investors ( non promoter ) of such investment companies should demand from the Government and SEBI to devise special Rules and Regulations for these companies1 ) Such investment holding companies should compulsorily be listed in BSE / NSE. ( to improve liquidity ).2 ) Face value should be split ( to improve liquidity )

3 ) Meaningful quantum of dividends should be declared . ( Minimum 25 % of the Financial Year's EPS should be declared as Dividend percentage ) Some Investment Holding Companies.FARM ENTERPRISES LIMITED ( Reliance Enterprises Limited )Mukesh Ambani Group ; Promoters' Shares in Reliance Industries Limited ; Not Listed , Massive EPS - No Dividend . AGM not in auditorium ; Very few non company share holders attend AGM .Conversion of Equity Shares to Preference shares) etc etc. Rate in unofficial market around Rs, 600 ( True Value may be in thousands ) .There should be listing in the NSE .http://www.rareindianshares.info/2009/12/farm-enterprises-limited.htmlPNB FINANCE AND INDUSTRIES LIMITEDBHARAT NIDHI LIMITEDCAMAC COMMERCIALBelong to Samir Jain of Bennett Coleman And Company ( Times of India Group ). These companies hold promoters ' shares in Bennett Coleman And Company Limited .Example : PNB Finance And Industries Limited ( Equity Rs. around 3 cr , Face value Rs. 10 ) holds , on consolidated basis , around 58 lakh shares of Bennett Coleman And Company Limited . This effectively translates into around 2 shares of Bennett Coleman And Company Limited for every one share of PNB Finance And Industries Ltd. Value of one share of Bennett Coleman And Co. has been worked out by some analysts to be around Rs. One Lakh ( please calculate independently ).But share of PNB Finance And Industries Limited ( Face Value Rs. 10 ) is being traded unofficially Rs. 4500 - Rs.5000 which is a mere fraction of its true value. Although the EPS for the financial year ended was around Rs. 79 /- , dividend paid was only 6 % ( a return of 60 paise on an investment of nearly Rs. 5000 ).( In the unofficial trades ,share price of Bharat Nidhi is around 25 % higher than that of PNB Finance And Industries Limited .Rate of Camac Commercial could be higher than Bharat Nidhi Limited )( There are , presently ,only buyers of PNB Finance and Bharat Nidhi shares and practically no seller ) No official trading in CSE .DSE is closed.There should be listing in NSE.Shares should be split in to Re. 1 each .http://www.rareindianshares.info/2009/06/pnb-finance-industries-limited.htmlhttp://www.rareindianshares.info/2010/09/bennett-coleman-and-company-limited.html

Cadbury India Limited

We salute all those share holders of Cadbury India who are steadfastly giving their time and money in pursuing the High Court case against compulsory acquisition of shares from remaining minority share holders.There are around 8,159 remaining non promoter shareholders who together own 2.42% stake in Cadbury India. We strongly feel that Government of India and SEBI should amend the laws so that Companies using their " brute majority " are not able to " compulsorily " buy out minority shareholders at what they perceive to be the " fair value " . Delisting may be OK . But a High Court Order for selective share reduction ( of Non Promoter Share holders ) is a different matter altogether. 1 ) If a company wishes to buy back compulsorily then in the voting procedure the majority holder ( promoter ) should be debarred from voting . Only the small share holders should have the Right to vote on that particular Resolution .2 ) As in the case of land acquisition , the Company should state valid reasons for acquisition of remaining shares ( In Cadbury 's case the remaining 2 odd % share holders can , frankly , in no way alter the Company 's policies.) Only a few more Annual Reports are to be despatched and a few more chairs at the AGM . ( Cadbury India Limited 's shares were delisted w.e.f 20-01-2003 )3 ) There should be a soletium ( a premium over and above the fair value to compensate for compulsory buy out ) of 50 % If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority holding at that rate . The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. For example if Cadbury India Limited feels that Rs.2000 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy at the same rate the majority shares from the Promoters. A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders However , we sincerely wish that Cadbury India Limited offers its remaining loyal share holders " Kuchh Meetha " and in New Year 's " Shubh Arambh " withdraws this move.-----------------------------------------------------------------------------

August 15, 2009

In a very surprising and complicated legal move Macmillan Publishers Limited has extinguished old Equity Shares and has given its shareholders 3 Options :-1 ) Cash option of Rs. 69 per Share ( same rate as was offered 6 years ago !! ) 2 ) Opt for Redeemable Preference Shares ( RPS ).3) Continue as Equity Shareholder of the Transferee Company ( through Macmillan Equity Shares Trust ).( in terms of Clause 18 . 04 )=====================================Kindly note :-1 ) The above Options are to be exercised within a period of 60 days from Record Date i.e. before 13 -04-2014 2 ) The Default Option is No 1 Option i.e. cash offer of Rs.69 per Share3 ) The Shareholder if he receives a Cheque for Cash Option can return the un encashed cheque with in 30 days and can opt for other two options i.e. Preference Shares / Equity Shares.3 ) RTA are Cameo Corporate Services Limited , ChennaiTel : 044 -28460390 to 28460395email : investor@cameoindia.com========================Blog Comments : It seems the management is desperate to kick out its Equity shareholders at fraction of NAV of Company.The net worth / prospects seems to have improved greatly ( please recheck this point independently ) with the merger of wholly owned subsidiary , i.e.Frank Brothers And Company ( Publishers ) Limited with Macmillan Publishers ( India ) Limited .3 ) Regarding our holdings in Macmillan Publishers ( India ) Limited we have opted , on immediate basis , for the Equity Option.4 ) No worry about Liquidity - Please Recheck independently -( We have Rare Indian Shares site )

General Warning : Investment in Shares Can be Injurious to Your WEALTHCaution :The blog writer has personal/ family members' holdings in this company , so please make suitable "provisions " for likely over optimism( NB : All information given in good faith. Please recheck all facts. No responsibility taken by this author / blog . )